good or bad - you decide, page-25

I hear people saying that it is good news that SL exercised his 2 million options. However, I note no-one has mentioned that SH did not exercise his 2 million options which matured at the same timeon 12 Nov at 5 cents as well. This would normally confuse the market, as it would indicate that not all directors believe that everything is as rosy as portrayed. Especially considering that the share price is higher than the exercise price. I expect that SH is of the opinion that exercising at 5 cents when the share price is higher may indicate that there is a risk that the shares could be out of the money shortly thereafter.

Keeping this in mind, from the perspective of the incumbent investor, IMO I expect that they would have said that they required the exercise of options as part of the negotiations, so that there is more hurt money on the table along with their new injection of funds.

Although the movement from Trading Halt to Suspension is not unusual, as it normally takes more than 2 days to complete negotiations, what it does indicate is that the new investor is not as secure as one would hope.

Considering my first comment, there is a risk that the issue price could be such that the price will be sub-5 cents, and undertaking a capital raising at the same time as the issue of new shares is a good way to passify existing investors.

What I am hoping is that the new investor is such that it will significantly supportive to the share price and will justify participating in the capital raising.

ALL IN MY OPINION OF COURSE